Ripple Price Forecast: XRP remains under pressure as institutional demand fades

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Ripple (XRP) holds above $1.30 at the time of writing on Tuesday, sustaining losses for three consecutive days amid war-driven weak market sentiment. The remittance token is grappling with overhead pressure amid narrowing institutional and retail demand.

XRP trades under pressure, closing in on $1.30 support on Tuesday.
XRP ETFs experienced outflows of $2.3 million on Monday following muted activity on Thursday and Friday.
The XRP derivatives market remains weak, with futures Open Interest steadying at $2.54 billion.

This waning demand comes as XRP hovers near crucial support levels, making the token vulnerable to further losses if selling momentum intensifies.

XRP declines amid cooling institutional interest

Interest in XRP investment products has taken a hit in recent weeks, driving capital exit across Exchange-Traded Funds (ETFs) and derivatives. US-listed XRP spot ETFs registered outflows totaling roughly $2.3 million on Monday, following muted activity last Thursday and Friday.

Cumulative inflows stand at $1.21 billion, with net assets under management averaging $929 million, according to SoSoValue data. If risk appetite fails to improve and capital exit extends, recovery in XRP price could remain a pipe dream in the short to medium term.

Retail interest remains subdued, with Open Interest (OI) averaging $2.54 billion on Monday and Tuesday — reflecting the total value of outstanding futures and options contracts. In contrast, OI peaked at a record $10.94 billion in July, coinciding with the price hitting an all-time high of $3.66. This sharp decline has dampened retail investor interest in the token and signals their reluctance to take on additional risk.

Technical outlook: XRP extends weakness as $1.30 support holds

XRP is edging lower at $1.31 amid a short-term bearish trend. Daily closes remain well below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are clustered between $1.45 and $1.88, keeping the broader trend under pressure. The Moving Average Convergence Divergence (MACD) indicator slips further below the signal line as the red histogram bars expand on the daily chart, suggesting strengthening bearish momentum.

At the same time, the Relative Strength Index (RSI) is at 37 on the same chart, staying below the 50 midline and reinforcing a downside-tilted tone rather than oversold exhaustion.

XRP's initial resistance emerges at $1.36, where recent minor rebounds stalled with a stronger cap expected at $1.40 and then $1.45, the latter aligning with the 50-day EMA. On the downside, immediate support is seen at $1.30, where the latest breakdown occurred, and intraday buyers have attempted to stabilize the price action. A decisive close below $1.30 would open the way toward $1.25 and then $1.22, exposing the broader corrective leg as long as momentum remains bearish.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

Which are the pros and cons of crypto ETFs?

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

(The technical analysis of this story was written with the help of an AI tool.)

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